Correlation Between Aurora Mobile and Apptech Corp
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Apptech Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aurora Mobile and Apptech Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Apptech Corp, you can compare the effects of market volatilities on Aurora Mobile and Apptech Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aurora Mobile with a short position of Apptech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Apptech Corp.
Diversification Opportunities for Aurora Mobile and Apptech Corp
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurora and Apptech is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp and Aurora Mobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aurora Mobile are associated (or correlated) with Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Apptech Corp go up and down completely randomly.
Pair Corralation between Aurora Mobile and Apptech Corp
Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 10.43 times less return on investment than Apptech Corp. But when comparing it to its historical volatility, Aurora Mobile is 8.17 times less risky than Apptech Corp. It trades about 0.1 of its potential returns per unit of risk. Apptech Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Apptech Corp on April 29, 2025 and sell it today you would earn a total of 1.00 from holding Apptech Corp or generate 3.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 43.55% |
Values | Daily Returns |
Aurora Mobile vs. Apptech Corp
Performance |
Timeline |
Aurora Mobile |
Apptech Corp |
Risk-Adjusted Performance
OK
Weak | Strong |
Aurora Mobile and Apptech Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurora Mobile and Apptech Corp
The main advantage of trading using opposite Aurora Mobile and Apptech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Apptech Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apptech Corp will offset losses from the drop in Apptech Corp's long position.Aurora Mobile vs. Alarum Technologies | Aurora Mobile vs. Cerberus Cyber Sentinel | Aurora Mobile vs. Taoping | Aurora Mobile vs. Bridgeline Digital |
Apptech Corp vs. Ryvyl Inc | Apptech Corp vs. VirnetX Holding Corp | Apptech Corp vs. Gorilla Technology Group | Apptech Corp vs. authID Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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